Lateral thinking is a creative problem-solving technique developed by Edward de Bono. It involves looking at problems in unexpected ways in order to break standard thinking patterns and arrive at novel solutions. Some key aspects of lateral thinking include relaxing rigid thought structures, using chance, and considering alternative perspectives. De Bono developed techniques like the Six Thinking Hats method to encourage lateral thinking. Lateral thinking puzzles aim to demonstrate how reexamining assumptions can reveal new insights into seemingly impossible problems.